Economic news

Oil slows down due to profit-taking though reduced supply keeps prices up

Oil prices slowed down on Tuesday due to traders taking profits after a period of rise and the trend for U.S. exports expansion that holds back general bullish mood, which played an important role in bringing Brent over $60 for a barrel.

Brent prices were also pulled down by Iraq’s decision to add to oil exports from the south 220,000 barrels daily - 3.45 mln barrels daily to compensate for supply problems from Kirkuk in the north. Brent futures, the global reference for prices of oil, slid to $60.77 a barrel this morning, which is 13 cents loss from the last settlement. However, this is still quite high and far better than June figures.

U.S. WTI futures moved down to $54 per barrel, which is 15 cents down. This is close to the maximum since February and much higher than June figures. Following the climb of oil prices by near 5% this month, profit-taking occurred, traders said. Despite common optimistic mood, a number of experts heeded to an overbought market.

U.S. shale production could limit mid- to long-term growth of prices, said ASR Wealth Advisers’ Shane Chanel.


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